"We have continued to work with NPC and its lenders to optimize NPC’s Pizza Hut restaurant footprint and strengthen the portfolio for the future, and today’s joint agreement to close up to 300 NPC Pizza Hut restaurants is an important step toward a healthier business," Pizza Hut said in a statement. On Monday, Pizza Hut said that it would also close down other "significantly underperforming" locations as the company moves towards a focus on pickup and delivery options. Per Fox 59, the company was nearly $1 billion in debt and faced with rising labor and food costs in addition to the economic stress caused by COVID-19. ![]() Though we don't know specifics yet on which locations will be shuttered, an Indianapolis Fox affiliate reports that a "substantial majority" are those with dining rooms.Īccording to Fox 59, this provides NPC International (the franchisee that filed bankruptcy) with "flexibility to explore options for achieving a value maximizing outcome as it seeks to finalize the terms of a comprehensive financial restructuring and emerge from Chapter 11." The company currently runs 1,227 Pizza Hut locations, making up for about 18% of the total.īut it wasn't just pandemic-related closures that forced the company to file. Pizza Hut is the latest to follow suit.įollowing news that one of the company's largest franchisees had filed for bankruptcy, parent company Yum! Brands said it would close roughly 300 Pizza Hut restaurants. In July, Dunkin' announced plans to shutter nearly 300 store locations across the United States while Popeyes, Burger King, and Tim Hortons have reported their own closures. The move will not affect operations or jobs at Pizza Hut Delivery or related franchises.The restaurant and bar industry has been hit particularly hard by the coronavirus pandemic - and massive national chains have been no exception. The measures aim to protect about 5,000 jobs across its remaining restaurants as well as the “longevity” of the business, it said. “We understand this is a difficult time for everyone involved and are supporting our team members as much as possible throughout this transition.”īosses were forced to renegotiate their rents through the CVA restructuring deal after revealing it faced “significant disruption” from the pandemic.
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